The Takeaway: If you’re searching for a great value on a newly constructed house, then El Paso, Texas, could be the place for you.
Newly constructed properties made up about 31% of U.S. single-family properties available on the market within the second quarter, in line with the residential actual property brokerage Redfin. That’s the best share of any second quarter on document.
There are loads of good causes to purchase new building, however let’s begin with the apparent: One of the very best issues about shopping for a brand-new house is that, properly, it’s new.
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“Buying a new construction home gives you a clean slate,” Okay. Hovnanian, the homebuilding firm, wrote in a latest weblog publish. “There’s no red shag carpet, rooms covered in floral wallpaper, or pastel-colored bathrooms you’ll have to change as soon as you move in. Working with a new home builder gives you the opportunity to put your touch on your home without having to lift a finger.”
Those perks do not have to come back at a premium. In reality, in as we speak’s excessive rate of interest surroundings, some builders are even decreasing costs on newly constructed properties to dump extra stock, Redfin information journalist Dana Anderson wrote in a weblog publish.
Driving the surge in new building was a mix of a number of elements, together with the “pandemic homebuying frenzy” and rising rates of interest, Redfin stated.
During the pandemic, distant staff migrated for extra reasonably priced housing and created so-called pandemic boomtowns. Building permits for single-family properties shot up in 2021 and 2022, and plenty of of these accomplished properties at the moment are available on the market, Redfin stated. Meanwhile, the vast majority of single-family householders are locked in to decrease mortgage charges, so fewer current properties are on the market.
“For many homebuyers, new construction is a welcome option in today’s market —especially in the southern part of the country, where new homes tend to be more prevalent,” Anderson wrote.
Using information supplied by Redfin, we’ve recognized the housing markets the place new-home building makes up roughly one-third or extra of the properties on the market, and the median gross sales value of these properties falls beneath $485,000.
In these cities potential homebuyers have lots of contemporary stock to select from — and it’s comparatively reasonably priced. The median gross sales value within the U.S. was about $440,500 in July, in line with Redfin.
New house building was commonest in El Paso, Texas, the sixth-most populous metropolis within the Lone Star State. In the so-called Sun City, which has about 680,000 residents, newly constructed properties accounted for greater than half of for-sale properties within the second quarter, roughly a 4% improve from a 12 months earlier.
Incidentally, the median gross sales value of newly constructed properties in El Paso was one of many lowest on the listing, at just below $280,000.
There are areas, after all, the place there may be little or no new building, in some instances as a consequence of lack of land and constructing restrictions. Honolulu had the least new house constructing exercise within the nation within the second quarter, adopted by San Diego, Pittsburgh, Oxnard, Calif., and Detroit.
U.S. metro space | Share of new-build, single-family properties on the market, Q2 2023 | Median gross sales value |
---|---|---|
El Paso, TX |
52.10% |
$279,950 |
Omaha, NE |
45.50% |
$436,287 |
Raleigh, NC |
42.10% |
$467,000 |
Oklahoma City, OK |
39.30% |
$346,069 |
Boise, ID |
38.30% |
$484,990 |
Houston, TX |
35.30% |
$356,915 |
Richmond, VA |
34.80% |
$479,950 |
Greenville, SC |
33.80% |
$358,195 |
Charleston, SC |
33.80% |
$439,500 |
Tulsa, OK |
33.10% |
$359,396 |
San Antonio, TX |
32.20% |
$329,800 |
Fort Worth, TX |
31.80% |
$400,000 |
Charlotte, NC |
31.30% |
$424,023 |
Austin, TX |
30.40% |
$463,990 |
Lakeland, FL |
29.60% |
$348,070 |
McAllen, TX |
29.10% |
$256,500 |
Dallas, TX |
28.40% |
$453,488 |
Source: www.thestreet.com”